The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1887-10-21

CeFzar to make such Contracts as he may
deem proper for obtaining money 70 be
advanced for carrying on SAID plantation
including the usual and necessary Outiayz
thereon for IsBers salaries rents, 5axes and
otherwise and for the sale OF the sugars %
be made thereon, ont no unusual outiayz
for improvements or otherwise upon saId
property exceeding IN any one item the
sum Of $500 shall be made without the ex-
press approval Of this Court, etc
The racsFver made an arrangement with
Aezsrs. fErinbauna gee, the former agents,
70 continue their agency Of the plantation
and make advances at ~ per cent com
mission and ger cent. interest
Contrary 70 expectation the plantation
has run behind owing to the low price OF
sugar and certain defects IN the plant
On April =. 1887 the holders Of the see-
oud mortgages Henderson and others, fled
a bill 20 forecl0se their mortgage, and an
order vas made on april I35h directing
summons 10 De served upon parties re-
t1rnabIe On July 18th. and further, that
al advances and sums ct money which NAV
be made To W z Alien the receiver Of
this Court now N charge Of the premises
described IN the said bill and all sums
which NAV Dc expended by him IN keeping
Up said plantation and preserving the
crops Of the same and IN planting such new
crops as good hushandry may require until
3 sale Of said property IS had under the
order Of this Court, shall constitute first
lien upon said premises and shall be paid
out Of the first moneys realized upon any
sale Of said premises
The proceedings IN foreclosure went
along IN the usual way and the plantation
was sold on September 9Th for the sum Of
sIG3 coo. AeSsrs eFFinbaun1 & Co. being
the purchasers. This amount not being
much more than sufficient to discharge the
principal and interest Of the three mort
cages, as we'll as the receivers expenses
since the order on the bill for foreclosure
April I3, 1897. the Important and difficult
question arises on the motion Of GFFinbaum
& Co. whether the balance Of account for
running the plantation from the appoint
aent Of the receiver, August 5, 1885 10 the
order In foreclosure, should be given prior
iry over the mortgages as a first lien
The mortgages do not object to the bah
2nce Of The receivers account since AprEI
I3. 1887, being paid IN fun before the mort
cages are discharged aud this account may
oe referred to Master,
The first and third MORTGAGES strenu-
DUSTY oppose the allowance OF the receIv-
er's account from August ), 1885, TO April
3, 1887, as a preferred claim. The second
mortgages, Henderson et al, are pro
5ected by endorsement, and say nothing.
It Is urged on 0ehaIf of these mort
cages that not having beer made parties
70 the original bill, which prayed for the
appointment Of 3 receiver, the Court Is
now without Jurisdiction 70 create 3 lien
which shall have priority ever their liens
The general jurisdiction Of the Court TO
appoint receiver Of partnership property
upon the death Of partner on proper
showing OF the necessity for it IS not ques-
toned.
Nor Is 1t questioned by the mortgages
that the peculiar circumstances Of this
case, Of a sugar plantation owned by
partnership, On one partner dying. the sur
wing partner and the executors not hav-
ing funds, aud not being wiling to assn me
the responsibility Of carrying II on, would
Justify the appointments Of receiver
IN the interests Of the devisees and Of the
unsecured creditors
A sugar estate when once II has stopped
operations has but little value over the
separate items Of property composing it.
It's value consists IN what IL can produce
aud If it Is suffered TO lie idle and crops are
not kept IN cultivation and preparation TOR
successive crops neglected. u depreciaees
nost rapidly.
The necessity OF keeping the work Of q
sugar plantation moving Is a. essential TO
It's preservation az production property as
z rsIIroaa with this difference only, that
the public right 70 have railroad kept Up
fer it's convenience does Let exist In the
case Of q plantation.
In August, 1888, the only alternative was
an immediate sale By the executors with
the consent OF the mortgages or the ap-
peinsneHt OF receiver to run IL until is
could be wound up and It's debts
paid from the profits or eventually sold TO
What was the object then OF the receiver
sk1fp IA this case? None OF the mortgages
had taken possession. Their mortgages
were not due, and they we're content with
their security. l can come 70 no other
than thEs-thas the object OF
the reeeiFershIp was TO enable the unse~
cured creditors and the heirs to have the
plantation worked, 50 as 70 pay the credI- /
tors and save something for the heirs.
The mortgages did not fear that the Sc
sUFity wogid prove insufficient or that the
noFtgSgoEs were iHsoivent which are the
grounds upon which receiver may be ap-
pointed In aid Of . mortgage. They took
40 steps 20 have receiver appointed, re-
y1ng entirely upon their security. T do /
1os think it q an answer TO say that as
hey were benefited by the plantation BE-
ng continued IA operation for two years
hey should not admit the lien for the ex-
osases for running the same to q priority /
3ver their own liens.
If the plantation had been stopped for